The Following Data Are Available Relating to the Performance of Monarch

The following data are available relating to the performance of Monarch Stock Fund and the market portfolio: $$\begin{array} { | l | l | l | } \hline & \text { Monarch } & \text { Market Portfolio } \\\hline \text { Average Return } & 16 \% & 12 \% \\\hline \text { Standard Deviation of Returns } & 26 \% & 22 \% \\\hline \text { Beta } & 1.15 & 1.00 \\\hline \text { Residual Standard Deviation } & 1 \% & 0 \% \\\hline\end{array}$$ The risk-free return during the sample period was 4%.
-Calculate Treynor's measure of performance for Monarch Stock Fund.

A) 10.40%
B) 8.80%
C) 44.00%
D) 50.00%
E) none of the above

Correct Answer:

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